Government blames sub-contractors of ONGC and Oil India for service tax evasion worth Rs 300 crore

The government has officially declared that it has detected service tax evasion of about Rs 300 crore by sub-contractors of state-owned firms like Oil and Natural Gas Corporation (ONGC) and Oil India.

As per the information submitted for the trial, the estimated evasion of service tax is more than Rs 200 crore by Delhi-based Shiv Vani Oil and Gas Exploration Services Ltd, which has ONGC and Oil India Ltd in its clientele.

"On the basis of specific information, officers of the Directorate General of Central Excise Intelligence (DGCEI) have recently booked a case of service tax evasion against Shiv Vani Oil and Gas Exploration Services Ltd.

They admitted that due to financial constraints they had not deposited service tax to the government," the Central Board of Excise & Customs said in a statement today.

Officials also stated that the sub-contractors did nothing as apart of their levies related responsibilities. Neither did they claim the service tax from its clients ONGC and Oil India, nor did it deposit it with the government.

However, in case of ONGC the amount was recovered by the sub-contractor from the construction company named L&T but it was not deposited with the government.

The other companies that have been helped under the levies charges are from the construction domain, namely L&T's sub-contractors, which includes Chitra Builders Pvt Ltd, Coastal Infratech Pvt Ltd, Pratik International Infrastructure Pvt Ltd, Coastal Infra, Pratik Associates, and Chitra Construction Company.

Read more about: oil india
Story first published: Friday, April 5, 2013, 13:31 [IST]
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